What is ID Theft?
"The 1990's spawned a new variety of crooks called identity thieves.
Their stock in trade are your everyday transactions. Each transaction requires
you to share personal information: your bank and credit card account numbers;
your income; your Social Security number (SSN); and your name, address
and phone numbers. An identity thief co-opts some piece of your personal
information and appropriates it without your knowledge to commit fraud
or theft. An all-too-common example is when an identity thief uses your
personal information to open a credit card account in your name."
--
from http://www.ftc.gov/idtheft

Here are some ways that identity thieves
work:

They open a new credit card account, using your name, date of birth, and
Social Security number. When they use the credit card and don’t pay the
bills, the delinquent account is reported on your credit report.

They call your credit card issuer and, pretending to be you, change the
mailing address on your credit card account. Then, your imposter runs up
charges on your account. Because your bills are being sent to the new address,
you may not immediately realize there's a problem.

They establish cellular phone service in your name.

They open a bank account in your name and write bad checks on that account.

What to do if ID Theft happens to you?

Contact the fraud departments of each of the three major
credit bureaus and report that your identity has been stolen. Ask that
a "fraud alert" be placed on your file and that no new credit be granted
without your approval.

For any accounts that have been fraudulently accessed or opened, contact
the security departments of the appropriate creditors or financial institutions.
Close these accounts. Put passwords (not your mother’s maiden name) on
any new accounts you open.

File a report with your local police or the police where the identity theft
took place. Get a copy of the report in case the bank, credit card company,
or others need proof of the crime later on.

Contact the Federal Trade Commission
(877-438-4338)
Recently the FTC took steps to standardize the fraud declaration reports
that victims file with banks and creditors. The ID
Theft Affidavit, is designed to dispute an account falsely opened
in your name. While some creditors and financial institutions may require
additional or different paperwork, many of them accept this form, which
will definitely save you time. It's wise however, to contact your creditors
and financial institutions individually regarding their requirements before
filling out the form. The FTC also has on online Identity Theft Complaint
Form and a hotline (1-877-IDTHEFT) to guide you through the process.

Contact the Social Security Number
(SSN) Fraud Hotline (800-269-0271)
If you believe someone has gained access to your social security number,
notify the hotline immediately.

Unfortunately, victims of ID theft may be conducting damage control
on their credit reports long after the original crime. However, by following
these steps you may be able to reclaim your identity and preserve your
long-term credit.

Tips to help keep your ID safe:

Protect your account numbers. If you didn't place the telephone call or
initiate an Internet transaction, do not give out financial information
such as your bank account numbers, credit card numbers or your social security
number.

If you receive a new shipment of blank checks in the mail, make sure you
account for all check numbers, and secure your new and cancelled checks
in a safe place.

Protect your ATM or check card PIN (personal identification number). Don't
leave ATM receipts lying around, and never write your PIN number on the
back of the card.

Review your bank and credit card statements regularly for any unauthorized
charges. Remember, awareness is the best defense against fraud.

Shred financial solicitations that arrive in your mailbox as well as your
old financial documents before discarding them. Those seemingly useless
documents could be used to apply for a credit card and run up a hefty bill.
To reduce the amount of junk mail solicitations you get click
here.

Drop bill payments and other financial correspondence in a secure, official
postal service collection box. Don't use a mailbox that anyone walking
by can get into.

Order copies of your credit report once a year. Not
only is it good to have, but staying current will help you manage your
credit rating.

Get in the habit of looking for the yellow padlock or key icon on your
web browser before making an online purchase. Some sites even contain seals
from organizations like the Better Business Bureau or VeriSign to demonstrate
their security.

Don't open e-mail from unknown sources and use virus detection software.

A new law enables consumers to request their free credit reports through
a central web site, toll-free telephone line, or by mail and gives them
the option of making a single request to get copies of their report from
all three major credit bureaus. Consumers can order their credit reports
by clicking on www.annualcreditreport.com,
calling 877-322-8228, or filling out the Annual Credit Report Request Form
and mailing it to: Annual Credit Report Request Service, P.O. Box 105281,
Atlanta, GA 30348-5281.

You can opt-out of direct mail credit card offers by having
your name and address removed from mailing lists obtained from the main
consumer credit reporting agencies: TransUnion, Experian, Equifax,
and Innovis. Just call 888-5OPTOUT (888-567-8688), Opt
Out Online, or write to the following address (be sure to include your
full name, current address, Social Security number and telephone number):